Am I Mad??

kevvhayes

Hi all,
I'm seriously thinking of setting up a barber shop in my local town. There are already 2 barbers here but i hear one of them is closing down soon. Is this a business that ye think might be sustainable in the current climate? there is a population of about 4000 in the town and surrounding area. Thanks in advance for any comments.

Royal Irish

If there is only going to be 1 barbers, and you can actually do a good hair cut I dont see why not. Best of luck with it if you go ahead.

TheCostumeShop.ie: Ronan

Lets look at the maths, in a back of an envelope style business plan. Pop of 4000, Half males = 2000. Lets assume they all get their hair cut once a month. That's 500 per week, based on 4 weeks in a month.

Two rival barbers, lets assume that the others are good and on equal footing competition wise. That's 250 per week, at 11 euro a hair cut that's 2750 per week gross earnings. Loose that Vat 2,380.

Three full time staff working at 60% efficiency to manage this workload inclusive of down time, averaging 500 per week (incl PRSI etc). Remains 880 for public liability insurance, electricity, rent, magazines, bank fee's, staff's holiday pay etc.

So plug in your numbers there and see if it works in your area? What are the rents etc.

Then do a quick SWOT.

Strengths - You might be a great barber, better location or able to get a better deal on premises due to the recession.

Opportunities - Maybe by educating customers why they need to get hair cut more often you can increase frequency of purchase. Up selling Hair Gel etc. Maybe could get a 70% market share due to cleaner premises etc.

Weaknesses - This is more likely to be owning a job than owning a business, it's unlikely it will pay you a wage without you there cutting hair. That's not necessarily a bad thing but understand the difference.

Threats - A third barber could open up beside you, Competitors could drop prices in a price war, Why did the last barber go bust (ask him)?

Hope that gives you some direction to get your mind working. Figures are just pulled from the top of my head and not intended to be pro / against the idea.

Best of luck.

kevvhayes

Thanks Ronan. Some good advise there, much appreciated.

I'm friends with a barber who has his own place in a dublin suburb, which he took over from the previous guy who had it for 20 years or so. He has always just got by, and people always moan at him for raising his prices 50 cents every six months, but he has no choice. Last time I spoke to him he was living at home (33/34 years old) because he couldnt afford to move out, and generally wanting to get out of the barber business but a little bit trapped in it. His shop has a primary and secondary school 2 mins away and plenty of custom. Just doesnt make a lot of cash